The PBOC, the National Financial Regulatory Administration and the CSRC said
they will strengthen policy support to stabilize the capital market, refine
implementation details and urge financial institutions to fully use available
tools. They will, as needed, conduct swap facilities among securities firms,
mutual funds and insurers, expand participating institutions, modestly lower
swap fees and optimize pledge and operational arrangements. The stock-repurchase
re-lending program will move from a temporary to a permanent institutional
arrangement; the re-lending rate is cut from 1.25% to 1.00%. Financial
institutions should follow market-based pricing, add reasonable spreads above
the re-lending rate and increase loan supply.
